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MCDM Farm System Analysis for Public Management of Irrigated Agriculture

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  • Gomez-Limon, Jose Antonio
  • Berbel, Julio
  • Arriaza Balmón, Manuel

Abstract

In this paper we present a methodology within the multi-criteria paradigm to assist policy decision-making on water management for irrigation. In order to predict farmers' response to policy changes a separate multi-attribute utility function for each homogeneous group, attained applying cluster analysis, is elicited. The results of several empirical applications of this methodology suggest an improvement of the ability to simulate farmers' decision-making process compared to other approaches. Once the utility functions are obtained the policy maker can evaluate the differential impacts on each cluster and the overall impacts in the area of study (i.e. a river basin) by aggregation. On the empirical side, the authors present some studies for different policy instruments including water pricing, water markets, modernization of irrigation systems and a combination of them.

Suggested Citation

  • Gomez-Limon, Jose Antonio & Berbel, Julio & Arriaza Balmón, Manuel, 2005. "MCDM Farm System Analysis for Public Management of Irrigated Agriculture," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24676, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae05:24676
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    References listed on IDEAS

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    1. José A. Gómez-Limón & Laura Riesgo & Manuel Arriaza, 2004. "Multi-Criteria Analysis of Input Use in Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 541-564.
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    4. Randall, Alan, 1981. "Property Entitlements And Pricing Policies For A Maturing Water Economy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 25(03), December.
    5. Keeney,Ralph L. & Raiffa,Howard, 1993. "Decisions with Multiple Objectives," Cambridge Books, Cambridge University Press, number 9780521438834, March.
    6. Glenn D. Schaible, 1997. "Water Conservation Policy Analysis: An Interregional, Multi-Output, Primal-Dual Optimization Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 163-177.
    7. Huffaker, Ray & Whittlesey, Norman, 2000. "The allocative efficiency and conservation potential of water laws encouraging investments in on-farm irrigation technology," Agricultural Economics, Blackwell, vol. 24(1), pages 47-60, December.
    8. José A. Gómez-Limón & Manuel Arriaza & Julio Berbel, 2002. "Conflicting Implementation of Agricultural and Water Policies in Irrigated Areas in the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 259-281.
    9. Arriaza Balmón, Manuel & Gomez-Limon, Jose A. & Upton, Martin, 2002. "Local water markets for irrigation in southern Spain: A multicriteria approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(1), March.
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    11. Siskos, Y. & Despotis, D. K. & Ghediri, M., 1994. "Multiobjective modelling for regional agricultural planning: Case study in Tunisia," European Journal of Operational Research, Elsevier, vol. 77(3), pages 375-391, September.
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    13. Gomez-Limon, Jose A. & Riesgo, Laura, 2004. "Irrigation water pricing: differential impacts on irrigated farms," Agricultural Economics, Blackwell, vol. 31(1), pages 47-66, July.
    14. Rehman, T. & Romero, C., 1993. "The application of the MCDM paradigm to the management of agricultural systems: Some basic considerations," Agricultural Systems, Elsevier, vol. 41(3), pages 239-255.
    15. Berbel, J. & Rodriguez-Ocana, A., 1998. "An MCDM approach to production analysis: An application to irrigated farms in Southern Spain," European Journal of Operational Research, Elsevier, vol. 107(1), pages 108-118, May.
    16. Huffaker, Ray & Whittlesey, Norman, 2000. "The allocative efficiency and conservation potential of water laws encouraging investments in on-farm irrigation technology," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 24(1), December.
    17. Bergevoet, R. H. M. & Ondersteijn, C. J. M. & Saatkamp, H. W. & van Woerkum, C. M. J. & Huirne, R. B. M., 2004. "Entrepreneurial behaviour of dutch dairy farmers under a milk quota system: goals, objectives and attitudes," Agricultural Systems, Elsevier, vol. 80(1), pages 1-21, April.
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    More about this item

    Keywords

    multi-attribute utility theory; water management; irrigation; policy analysis; Agricultural and Food Policy; Q25; Q15; C61;

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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